P272 - Business be aware of the changes ahead

P272 – Businesses to be Aware of the Changes Ahead

As most businesses now know, as of April 2017, those companies that have had historically an 05-08 meter now become a Half-hourly settled meter and therefore now attract metering and data collection costs.

However, the costs may not stop there as all the new meters, reportedly over 160,000, now become part of the capacity for the DNO (Distribution Network Operators) and the allotted capacity allowance for each meter is charged accordingly.

BUT, there are changes ahead that all HH metered businesses need to be aware of:

Under DCP228, Ofgem announced a change to the charging structure for DUoS (Distribution Use of System) which amends the peak period (4pm – 7pm Monday to Friday) costs by blending out the costs across the whole period instead of heavily weighting it to the RED period. This will take place as of April 2018.

YET More change, under DCP161, OFGEM are to introduce from April 2018 a penalty for those businesses that exceed their allocated capacity allowance (KVa) and this is likely to be significant.

So, those businesses that are new to the HH metered market need to be aware of their current available capacity allowance and monitor it to ensure that they do not exceed their KVa and if they are likely to, then apply to have this allowance increased. Obviously the larger your KVa, the more you are charged by the network but this is going to be considerably less than any penalty imposed.

How can BAS Energy help?

Our Dataveiw technology allows businesses to track and view their energy consumptions online.  Over time, BAS Energy can then help companies to evaluate their peak usage and advise on KVa’s and whether or not the business should increase their capacity allowance for the new peak period.

Find out more about our Dataview technology and P272.